ZEOTECH LIMITED — Interim / Quarterly Report 2013

Jul 29, 2013

Summary & Highlights for the June Quarter 2013

Laconia Resources Ltd

ASX Code: LCR, LCROA ABN: 29 137 984 297

www.laconia.com.au

Capital Structure

307.2 million shares

• 81.9 million listed options

20.5 million unlisted options

High-Grade Copper identified at newly optioned Fortuna Prospect[1] , Peru

• High Grade copper identified at Fortuna Prospect in analysis of historical diamond core and surface channel sampling. Highlighted individual results include;

• 5.75 m at 2.0 % Cu, 0.7 g/t Au and 97.31 g/t Ag

• 3.1 m at 2.27 % Cu, 3.43 g/t Au and 130.56 g/t Ag

• o 6.3 m at 0.46 % Cu, 1.84 g/t Au and 28.28 g/t Ag o 12.6 m at 0.3 % Cu, 0.11 g/t Au and 43.93 g/t Ag

• Surface channel sample results include;

• 0.8 m at 4.8 % Cu, 3.89 g/t Au and 251 g/t Ag

• o 1.4 m at 1.8 % Cu. 0.67 g/t Au and 51.3 g/t Ag

Community Agreements progressed at the Rasuhuilca Project

• Access and Infrastructure agreement reached with Yanama Community

• Continued advances in developing and fostering communication and confidence with the two remaining community groups requiring agreements

Corporate

Board of Directors

Matthew Howison Chairman

Ian Stuart Managing Director

Dr. Saliba Sassine

Non-Executive Director

• Closure of Entitlement Rights Issue

• Research & Development Grant of $486K received

• Option Agreement signed to divest Lennons Find Project

Planned Activities for September 2013 Quarter

• Progress Community Agreements on Rasuhuilca and Option licences to allow the commencement of drilling

• Modelling and estimation update for the Rasuhuilca gold-silver deposit.

• Data compilation and validation from the Huaco Cucho Project

Vincent Algar Non-Executive Director

Company Secretary

Matthew Edmondson

1 Refer ASX release 9 April 2013

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Rasuhuilca Gold-Silver Project, Southern Peru

(100% Laconia)

During the quarter Laconia has built on significant progress already made at the Rasuhuilca Project with additional encouraging historical exploration results. High grade copper-gold-silver values have been identified in historical diamond drilling and surface channel sampling at its newly optioned Fortuna Prospect within its flagship Rasuhuilca Project in Peru.

These results, while representing early-stage exploration work, are considered highly significant. They suggest that the high-grade copper discovered at the adjacent Española 1[2] Prospect at Rasuhuilca continues into Fortuna, bringing substantial potential for further increases in the Project’s total resource inventory.

The results also support Laconia’s growing belief that the shallow high grade copper-gold-silver mineralisation sits as a cap over an extensive copper porphyry system at Rasuhuilca. The copper in the cap, combined with knowledge of the geology, mineralisation and alteration, supports Laconia’s view that the porphyry may be an “El-Indio style” gold and copper porphyry system.

Fortuna, which is contained within a package of 11 tenements over which Laconia recently acquired an option (see ASX announcement dated 26 March, 2013), is one of several targets at Rasuhuilca, including Española 1 Prospect described in the March 2013 Quarterly.

Fortuna Prospect Geology

The Fortuna Prospect lies about 600m to the east of the Rasuhuilca Mineral Resource[3] in the Huaco Cucho No. 2 permit that is one of the 11 permits of the Option Agreement signed in March 2013.[4] Mineralisation is hosted by a set of two parallel veins that trend east-west for at least 90m and dip steeply to the north, also intersecting the large regional Huaco Fault at the west end of the prospect.

In addition to high grade copper, gold and silver values that are typical of the greater Rasuhuilca Project, Fortuna Prospect also contains some elevated zinc and lead. The polymetallic nature of mineralisation at Fortuna Prospect is indicative of metal transport under the highly mobile conditions generated in a porphyry environment.

The two veins at the Fortuna Prospect have been identified through surface channel sampling and diamond core drilling by Buenaventura between the years 1997 and 2002. During 2002, five diamond core holes were drilled at the Fortuna Prospect, and returned intersections confirming the main vein mapped at surface continues at depth.

The data from the drilling is well-documented and includes geology, sampling and QAQC data. Diamond core from the drill program may still exist, and discussions with Buenaventura are ongoing to acquire this historic core. The secondary parallel vein under cover of scree slope was discovered by the diamond drilling, and it lies about 20m to the north of the mapped Fortuna vein.

The surface geology of the Fortuna Prospect, surface channel sampling locations and diamond drillhole locations are shown in Figure 1. Significant intersections, calculated as weighted averages of down hole

2Refer ASX release 27 February 2013

3 Refer ASX release 1 June 2012.

4 Refer ASX release 26 March 2013

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

length to grade, of copper, gold and silver are annotated on the drill holes. True widths of the veins are not yet estimated, and all values presented are down hole intersection lengths.

An underground adit was developed at the 4760 level, to the western end of the Fortuna Prospect. The adit has driven about 100m across the Fortuna Lode sequence from north to south. At present geology and sampling data for the Fortuna adit development is being digitally captured from good quality PDF plans, validated and synthesised into the Company database.

Significant Historic Diamond drilling results from Fortuna are summarised below[5]

• 5.75 m at 2.0 % Cu, 0.7 g/t Au and 97.31 g/t Ag from 31.15 m in drillhole SBD 01 2002; including 1 m at 7.2 % Cu, 2.45 g/t Au and 387.38 g/t Ag from 32 m

• 3.1 m at 2.27 % Cu, 3.43 g/t Au and 130.56 g/t Ag from 61.6 m in drillhole SBD 05 2002; including 0.5 m at 12.1 % Cu, 19.8 g/t Au and 708.75 g/t Ag from 61.6 m; and including 0.3 m at 2.72 % Cu, 1.09 g/t Au and 114.85 g/t Ag from 64.4 m

• 0.15 m at 4.11 % Cu, 0.44 g/t Au and 365.5 g/t Ag from 11.95 m in drillhole SBD 01 2002

• 6.3 m at 0.46 % Cu, 1.84 g/t Au and 28.28 g/t Ag from 2.2 m in drillhole SBD 02 2002; including 1.6 m at 1.46% Cu, 6.71 g/t Au and 72.0 g/t Ag from 4.4 m

• 12.6 m at 0.3 % Cu, 0.11 g/t Au and 43.93 g/t Ag from 27.9 m in drillhole SBD 05 2002; including 2.6 m at 0.9 % Cu, 0.19 g/t Au, 64.78 g/t Ag, 0.11 % Pb and 0.25 % Zn from 29 m

Significant Historic Surface channel sampling from Fortuna results are summarised below

• 0.8 m at 4.8 % Cu, 3.89 g/t Au and 251 g/t Ag from surface channel sample 29095

• 1.1 m at 2.3 % Cu, 2.9 g/t Au and 50 g/t Ag from surface channel sample 29096

• 1.4 m at 1.8 % Cu, 0.67 g/t Au and 51.3 g/t Ag from surface channel sample 29119

• 0.8 m at 0.05 % Cu, 6.25 g/t Au and 585 g/t Ag from surface channel sample 29107

• 1.0 m at 0.06 % Cu, 1.22 g/t Au and 737.8 g/t Ag from surface channel sample 29109

• 1.0 m at 0.06 % Cu, 5.65 g/t Au and 93 g/t Ag from surface channel sample 29128

Figure 2 shows a cross section through the middle of the Fortuna Prospect, with the geological logging included as a graphic log down the drill hole. Significant down hole intersections are labelled on the drill hole, and demonstrate the location of the two veins.

5 Refer Appendix 1 ASX release 9 April 2013

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

==> picture [367 x 262] intentionally omitted <==

Figure 1: Plan view of the Fortuna Prospect, showing surface sample locations (coloured by copper content) and the drill hole locations. A possible eastern extension to the drill hole intersections is shown as dashed lines with question marks. The drill holes are annotated with the significant down hole intersections (true widths not known). Grid used is PSAD56, Zone 18 South.

==> picture [395 x 306] intentionally omitted <==

Figure 2: Cross section view of the Fortuna Prospect at about 632,200 E, showing drill hole SBD 05 2002 with the logged geology as a graphic log. The drill holes are annotated with the significant intersections. Grid used is PSAD56, Zone 18 South. Possible depth extensions of these two veins are marked with the dashed lines.

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Community Agreement Progress

During the quarter Laconia reached an agreement for rights to access and to build exploration infrastructure on land within the Yanama community, Peru. The Yanama community is one of three community groups within the immediate area of impact of the Rasuhuilca Project.

The agreement is a positive step toward obtaining social licence over the entire Rasuhuilca Project area required for government permitting for drilling. The Agreement shows strong support for Laconia and its advanced Rasuhuilca copper gold silver Project and reflects the transparency, respect and confidence Laconia is building with relevant community groups and stakeholders with whom we are working. The agreement puts the Project on a solid path for further exploration with predictable social license costs and commitments.

Support from the Central and Provincial governments continues to assist Laconia in the objectives identified in gaining social licence with the Ministry of Mines and Energy. The National Water Authority and Ministry of Presidential Advisors – National Office of Dialog and Sustainability are also contributing with tangible community projects and assistance.

Work Completed at the Rasuhuilca Project during the June Quarter 2013

• Continuing consultation with community groups

• Ongoing data review for the greater Rasuhuilca Project

• Expansion of the exploration model and scoping of exploration works to test for Porphyry Copper-Gold enrichment.

About the Rasuhuilca Project

The Project currently has an Inferred Mineral Resource estimate of; 360,000t @ 1.97g/t gold and 179g/t silver (at a 2.5g/t gold-equivalent cut-off).

Note: [All cut-offs based on an Xg/t Au Eq are conceptual in nature only. There has been insufficient metallurgical testwork to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut-offs used will be appropriate following further metallurgical testwork.]

The Rasuhuilca Project is located approximately 500km southeast of the Peruvian capital, Lima, in the southern part of the country (see Figure 3). It is an advanced, high-grade gold and silver project with near-term development potential and significant exploration upside potential. The Company’s strategy is to utilise the potential revenues from the project once in production to fund further exploration, and increase the current resource base.

This Mineral Resource statement is based on historical data and classified as Inferred Mineral Resource as there was a lack of independent QA/QC data available at the time of resource estimation. Independent sampling has since been completed by Laconia[6] to confirm the tenor of the historic data. The Company plans to review the resource (category and size) so it can confidently be used as the basis for mine planning activities, with an internal review of a feasibility study completed by previous owners (2008).

6 Refer to ASX Release 4 July 2012.

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Work Completed at the Rasuhuilca Project during the June Quarter 2013

• Continuing consultation with community groups

• Access and infrastructure agreement signed with Yanama community

• Expansion of the exploration model and scoping of exploration works to test for a porphyry copper-gold system

Rasuhuilca Project – Further Exploration Potential

The Rasuhuilca Project is situated on the collapsed rim of the Rasuhuilca strato-volcano within a highly visible zone of secondary potassic alteration. Laconia aims to target the following mineralisation styles:

• The network of outcropping gold-silver veins in lower temperature acidic outflow zones (silicaalunite-sulphide alteration);

• Large-scale, sub-horizontal disseminated gold-silver mineralisation within outflow zones;

• High-grade bonanza gold veins beneath the acidic outflow zones;

• Copper-gold mineralisation within buried intrusive stocks, or gold-silver-zinc mineralisation in skarns surrounding buried intrusive stocks.

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

==> picture [456 x 560] intentionally omitted <==

Figure 3: Rasuhuilca Project location map.

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Divestment of Lennons Find Project – Precious and Base Metals, East Pilbara WA (95% Laconia)

M45/368 (95%), E45/3293 (100%)

The project covers 116km[2] of Archaean terrain and is located approximately 40km from Marble Bar on the southern edge of the Mt Edgar Granitoid Complex, in the East Pilbara region of Western Australia. The Project is located on a granted mining lease and includes the Yandicoogina exploration licence E45/3293. Outcropping gossanous veins with elevated base metals grades are present in the project area and occur at a consistent horizon along a 16.5km strike length of the Duffer Formation.

During the quarter, Laconia entered into a Binding Terms Sheet to divest 100% of its interests in its Western Australian Lennons Find Project to Musketeer Minerals Pty Ltd (“MKM”).

MKM and Laconia entered into the Binding Terms Sheet to record the principal terms agreed between the parties for MKM’s acquisition of Laconia’s interest in these mining and exploration assets owned by Laconia, with the intention of MKM vending the assets into a shell company. MKM is currently seeking to acquire a new mining business activity and an ASX listed entity (“Shell Company”). Laconia controls the mining assets and associated permits, namely a 95% interest in M45/368 and a 100% interest in E45/3293 collectively called the Lennons Find Project.

The principal terms of the Binding Term Sheet contained the following:

1. Upon signing of Binding Terms Sheet a requirement for MKM to pay Laconia a non-refundable deposit of $100,000 cash for a six month exclusive option to acquire the Lennons Find Project.

2. Within 7 days of MKM or a shell company listing on the ASX or MKM or the Shell company completing a capital raising of $2million (by way of equity, debt or combination):

3. Laconia will be issued a 10% equity stake (fully paid ordinary shares) in either MKM or the Shell Company (at Laconia’s election).

4. Laconia will receive $400,000 cash from either MKM or the Shell Company; and

5. LCR may nominate a Board member to be appointed as a Non-Executive Director on MKM’s Board or on the Board of the Shell Company (at Laconia’s election).

The transaction is subject to all regulatory approvals including any necessary shareholder approvals.

The terms of this transaction allow Laconia to monetise value held in the Lennons Find Project while allowing Laconia shareholders to retain exposure to, and gain a direct benefit from the exploration in the region.

MKM is led by Steve Elliot who is a founding Director of Helix Resources NL and founding Managing Director of Talisman Mining Limited.

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Australian Exploration Activities

701 Mile Project – Precious and Base Metals, Northern Gascoyne, WA

( E52/2664 100% mineral rights, including manganese and iron; E52/2232, E52/2688 80% mineral rights excluding manganese and iron and 70% manganese and iron rights)

No work was completed this quarter. E52/2702 was surrendered.

Mooletar Iron Ore Project, Mount Magnet, WA

(100% Laconia)

(E58/391, M58/110, P58/1385-1388, P58/1408-1411, P58/1495, P58/1499.)

No work competed this quarter. M58/266 and M58/349 applications were withdrawn. P58/865, P58/1055 and P58/1056 expired.

Corporate

Peru Operations

Following the completion of his contract term in July, Ralph Nicholson resigned as General Manager Peru. Laconia Resources Limited appointed Greta Castillo as General, Manger Peru. Ms Castillo Is a lawyer by profession and the Principal of Legalia SAC a Peruvian law firm representing and providing management services to a number of Peruvian mining companies. Ms Castillo has extensive experience in business management, project development and community relations.

Non-renounceable Entitlement offer closed

On 7 June 2013 Laconia announced a non-renounceable rights offer of one (1) share (New Share) at an issue price of 1 cent per New Share for every three (3) shares held on the 19 June 2013 (Record Date), together with one (1) free attaching option exercisable at $0.06 each on or before 30 September 2018 for every one (1) New Share subscribed for and issued (New Option) (Entitlement Offer), to raise a maximum of $915,852.

The Entitlement Offer, which was available to all Laconia’s shareholders registered at 5pm WST on Wednesday 19 June 2013 whose registered address was in Australia or New Zealand, closed at 5pm WST on Thursday 4 July 2013.

Laconia received valid applications for 32,493,270 New Shares and New Options, comprising applications for 24,444,705 New Shares and New Options pursuant to shareholder entitlements and 8,048,565 additional New Shares and New Options pursuant to shareholder shortfall applications.

Gross proceeds raised totalled $324,932 and this represents a 35.5% take-up by shareholders. The placement of the balance of the shortfall representing of 59,091,930 New Shares and New Options is being managed by CPS Capital Group Pty Ltd, following the merger of the appointed Lead Manager, Indian Ocean Capital Pty Ltd with CPS Securities Pty Ltd.

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

Use of Proceeds

The Capital Raising proceeds will enable the Company to focus on finalising the necessary Community Access Agreements required prior to regulatory approval being granted to execute the planned drilling campaign, plus additional working capital. The funds will also be applied to completion of a resource update focusing on a review of the Rasuhuilca Gold-Silver Resource and inclusion of new Copper-GoldSilver targets defined recently by the Company.

Research and Development Tax concession

Laconia lodged a Research and Development Tax concession application for expenditure incurred during the 2011/12 financial year which has now been assessed by AusIndustry and the Australian Taxation Office. Laconia received the Research and Development tax offset amount of $486,000 in June 2013.

Board Announces Review of Operations

As an integral part of the Company’s ongoing operations, and in recognition of the current uncertainty in global financial markets, the Board has reviewed its current cost structures and implemented cost saving measures including a temporary reduction of executive and non-executive remuneration.

Outlook for September 2013 Quarter

Rasuhuilca Project

• Ongoing community consultation and approval process required for drilling approvals

• Resource Upgrade of Rasuhuilca Vein and Exploration targets

• Ongoing collation of historical project exploration data and target generation on 11 new option leases for gold, silver and copper.

ENDS

For further information on Laconia Resources Limited please contact:

Ian Stuart

Managing Director

Laconia Resources

P: +61 8 9486 1599

E: istuart@laconia.com.au

or visit our website at www.laconia.com.au

About Laconia Resources Limited

ASX Listed Laconia Resources Limited (ASX: LCR) is a Perth-based precious and base metals exploration and development Company with a Latin American focus. The Company’s flagship Rasuhuilca Project in Peru is an advanced copper-gold-silver project in the Ayacucho region of Southern Peru, across 4 permits covering 27.65 km[2] .

In addition, the Company has gained access to a further 11 contiguous permits through an Option Agreement, covering 62.22 km[2] . The total area of 89.87 km[2] hosts the entire Ccarhuaraso volcanic system that is proven to host high sulphidation epithermal gold and silver. The Corporate Strategy is to

==> picture [596 x 64] intentionally omitted <==

Laconia Resources – June 2013 Quarterly Report

==> picture [596 x 38] intentionally omitted <==

bring the gold and silver mineralisation into production in the shortest time possible, and to use the revenue to unlock the exploration potential for discovery of larger tonnages of copper, gold and silver.

In Western Australia, the Company has a portfolio of advanced mineral projects in the Murchison and Pilbara regions, across 18 granted tenements covering an approximate 776 km[2] .

Rasuhuilca Project Peru

The information in this announcement that relates to the Rasuhuilca Mineral Resources is based on, and fairly represents, information and supporting documentation prepared by Mr Michael Andrew, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Andrew is a Principal of Optiro Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Andrew consents to the inclusion in this presentation the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Mr Vincent Algar, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Algar is a NonExecutive Director and consultant of Laconia Resources Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Algar consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

==> picture [596 x 64] intentionally omitted <==

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

LACONIA RESOURCES LIMITED

ABN 29 137 984 297	Quarter ended (“current quarter”)
29 137 984 297	30 June 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (R&D Tax Refund/GST) Net Operating Cash Flows	Current quarter $A’000	Year to date (12 months) $A’000
	(451) - - (174) - 1 - - 541	(1,453) - - (1,608) - 19 - - 737
	(83)	(2,305)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (29) 10 2 12 - - -	(123) - (79) 10 63 37 (210) - -
	(5)	(302)
	(88)	(2,607)

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(88)	(2,607)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (Capital Raising Costs) Net financing cash flows	- - 153 - - (54)	2,285 - 153 - - (321)
	99	2,117
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	11 421 -	(490) 922 -
	432	432

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
			32
			-
1.25 Explanation necessaryfor an understandingof the transactions Item 1.23 includes aggregate amounts paid to directors including salary, director’s fees, consulting fees and superannuation Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest N/A		Explanation necessaryfor an understandingof the transactions
		Item 1.23 includes aggregate amounts paid to directors including salary, director’s fees, consulting fees and superannuation
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	N/A

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

Appendix 5B Page 2

30/9/2001

Appendix 5B Mining exploration entity quarterly report

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	180
	-
	-
	130
Total	310

Reconciliation of cash

Total Reconciliation of cash		310
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows)	$A’000	$A’000
to the related items in the accounts is as follows.
5.1 Cash on hand and at bank	250	70
5.2 Deposits at call	182	351
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	432	421

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	E52/2702 E26/120 P58/865-I P58/1055-I P58/1056-I	All Mineral Rights All Mineral Rights All Mineral Rights All Mineral Rights All Mineral Rights	100% 80% 100% 100% 100%	Nil Nil Nil Nil Nil

• See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	274,755,891	274,755,891
7.5 +Convertible debt securities (description)	1 Convertible Note, (escrowed to 20 June 2013) with an aggregate face value of $650,000 convertible as to principal to 6,500,000 Shares at a conversion price equal to $0.10 per Share and attracting interest at the rate of 10% per annum). The Note expires on 20June 2014.

• See chapter 19 for defined terms.

Appendix 5B Page 4

30/9/2001

Appendix 5B Mining exploration entity quarterly report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	20,500,000 49,500,000	- -	Exercise price 19.9 cents 6 cents	Expiry date 30 September 2014 30 September 2018
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

==> picture [101 x 46] intentionally omitted <==

Sign here: ............................................................ Date: 30 July 2013 (Company secretary)

Print name: Matthew Edmondson

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash

• See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001

Appendix 5B Mining exploration entity quarterly report

position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• == == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

30/9/2001